CSG (CSG) H1 2025 earnings summary

Executive summary

• Achieved record half-year results with revenues of €2.81bn, up 78% year-over-year, and operating EBITDA of €777m, up 83%, driven by defense and NATO demand.

• Closed acquisition of a nitrocellulose plant in Germany, completed joint venture with Greek HDS, and integrated The Kinetic Group, strengthening vertical integration and U.S. market presence.

• Completed minority buyout and merger of Fiocchi USA, supporting transformation and mitigating pricing/tariff risks.

• Introduced new military vehicle prototype and invested in advanced AI, defense, and situational awareness technologies.

• Secured major defense contracts, increasing backlog and pipeline to €14bn each.

Financial highlights

• 1H 2025 revenues reached €2.81bn, up 78% year-over-year; LTM pro-forma revenues at €5.7bn (+11%).

• Operating EBITDA for 1H 2025 was €777m (+83% YoY), with a 28% margin; LTM pro-forma EBITDA at €1.55bn (+12%).

• Net profit for 1H 2025 was €305m, up from €286m in 1H 2024; net profit attributable to shareholders was €238.9m.

• Net leverage at 1.9x, with gross debt of €3.9bn and net debt of €3.0bn as of June 2025; total assets increased to €8.55bn.

• Cash and cash equivalents at period end were €968m, up from €502m a year earlier.

Outlook and guidance

• Price increases in the Ammo+ division implemented in August are expected to support future margins.

• Continued strong defense spending and robust backlog underpin revenue visibility and future growth.

• Evaluating strategic alternatives, including potential IPO, to support ongoing growth.

• Acquisition accounting for The Kinetic Group and IFF group to be finalized by year-end 2025.